What is the effective interest rate

Reference no: EM132156879

Question: A student bought a $75 used guitar and agreed to pay for it with a single $85 payment at the end of 6 months. Assuming semiannual (every 6 months) compounding, what is the nominal annual interest rate? What is the effective interest rate? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132156879

Questions Cloud

Web resources are always credible : Table of contents is a component of an informal report. Web resources are always credible

Utility patent application several years ago for new product : What options do you have to amend the claims to respond to the Office Action and what considerations do you use in deciding the best option?

What is the nominal annual interest rate that they pay : At the Central Furniture Company, customers who buy on credit pay an effective annual interest rate of 16.1%, based on monthly compounding.

Give an example of a query that can be answered : Answer the specific multipart question and label the part you are answering ie. part a,b,c etc.

What is the effective interest rate : A student bought a $75 used guitar and agreed to pay for it with a single $85 payment at the end of 6 months. Assuming semiannual (every 6 months) compounding.

Compute the nominal annual interest rate : A bank is offering to sell 6-month certificates of deposit for $9500. At the end of 6 months, the bank will pay $10,000 to the certificate owner.

Think about a public figure or organization : 1. Think about a public figure or organization that uses technology to affect social issues and provide the following information:

What nominal annual interest rate did he receive : Mr. Sansome withdrew $1000 from a savings account and invested it in common stock. At the end of 5 years, he sold the stock and received a check for $1307.

Focus upon the concept that BI is an umbrella term : Focus upon the concept that ‘BI’ is an umbrella term and explain what the components of a ‘BI’ system are and what its architecture and purpose are.

User Account

All Pages